Give examples of goods with high utility and high prices, and goods with low utility and low prices

Utility is a term used in economics that means usefulness or satisfaction. Utility is a subjective measurement because what one person finds useful will not necessarily be as useful to someone else. If a good or service has a high marginal utility, consumers will be willing to purchase it. All purchases are evaluated based on the difference between the marginal cost and marginal benefits. It is important to differentiate between total and marginal utility when answering this question. Some goods, like water, have a very high total utility, but not necessarily a high marginal utility. Because most people already have access to water, the marginal utility of an additional unit of water isn't very high. Other goods like diamonds, do not have a high total utility, but a high marginal utility because many people do not have many diamonds. This issue is known as the paradox of value and is a very old discussion in economics that has an answer in marginal analysis. Water has a low price because it has a low marginal utility, while diamonds have a high price because they have a high marginal utility.

Here is a list of goods with high utility and high prices:

1. Automobiles

2. Housing

3. Healthcare Services

To continue your list, just consider goods and services which are expensive in your area.

Here is a list of goods with low utility and high prices:

1. Cassette Tapes

2. A single .mp3 download for a song you dislike

3. A copy of an outdated Windows operating system

To continue your list, just consider goods and services which are cheap because they are no longer used as much.